What is a Distributed Ledger?
If you are a little familiar with the digital currency market and blockchain technology, you are probably familiar with distributed general office or DLT. When talking to different people about the Chinese blockchain, most people describe the Chinese blockchain as a simple Distributed Ledger office. Due to the growing importance of digital currency, one of the basic concepts of this distributed general office market is how it works. For this purpose, in this tutorial, we want to make you more familiar with this concept.
General Office History: A Look-Back
To better understand the concept of distributed general ledger, it is best to look at this historically first.
Thousands of years ago, after the agricultural revolution, Communities underwent many changes. As the population grew, people became less interested in small communities. They had agriculture. People prefer living in larger villages with larger populations. They gave. But increasing the scale always brings more complexity. The emergence of more complex and larger communities after the agricultural revolution used numbers for A different system title. It seemed necessary to manage information.
Consider an Old Testament person named Jack responsible for collecting fruit for his family. This does not require memorizing the number of fruits of each tree separately because the human mind cannot store and process information in this volume.
By the way, with the growth of collecting communities, the Taxation of citizens by the community leader, tribal chiefs, and kings seems necessary Receipt. This requires trusted people to store and process information. It was felt numerically. So different types of information were formed, revenue information Individuals, information about debts between individuals, and transactions between them Were done.
For example, consider (tribe A) consisting of shepherds who have a lot of water storage during the agricultural season. A tribe in its neighborhood (tribe B) faces water shortages due to low rainfall and unfavorable geographical location. The chiefs of the two tribes enter into a deal with each other so that tribe “A” provides 5,000 liters of water to tribe B, and tribe “B” must pay 2000 liters of water with three tons of wheat in a year. Give tribe A.
On a large scale, transactions such as the one mentioned above require a lot of information storage and processing. But the human mind cannot memorize and process this amount of information. Due to the limitations of the human mind, human networks remained simple and small for a long time until a new system for processing large volumes of numerical information emerged. But what mechanism was used to overcome the limitations of the human mind? The short and simple answer to this question is one word: language! Especially the shapes and symbols representing numbers, products, and human connections.
The classic head office system can be considered a simple paper record system for storing information and numerical communications between individuals, families, and communities.
So, if some wheat between Jack’s family and his neighbor was exchanged in exchange for fruit, this exchange in the general office system Recorded: A system consisting of a tool for writing and a piece of paper written by community leaders. It was administered to record the exchanges and debts of the people of the society.
Years later, this system led to the formation of unions in Western Europe, which can be considered the first version of banks. Unions were formed to lend to farmers and builders and, as a result, used basic accounting methods to manage various exchanges centrally.
What does the (centralized) general office mean by examining the mentioned contents? If you are into accounting, you are probably familiar with general ledger.
Ledger is a mechanism for recording all the financial events of a company, community or ecosystem.
In other words, whenever a financial event occurs, the general ledger is used to record the information about that event. In modern accounting systems, the general ledger is where all financial events related to assets, capital, corporate debt, expenses, and final income are recorded and maintained. In the traditional form, the general ledger was a large ledger in which all accounts and related events had separate pages. Still, it is now used to record the general ledger accounting software in this software. This has led to higher speed and accuracy in doing so.
Now that you are more familiar with a general ledger, the question arises as to what Distributed Ledger means and how it differs from a classic general ledger.
What is Distributed Head Office Technology or DLT?
Put, a distributed general office is an office. It is a shared whole. In other words, like a classic system, the general office For managing and registering accounts is different from the classic type in maintaining and managing it.
For example, in the Bitcoin system, each node (person in the system) has a complete copy of the general ledger that can view all the transactions recorded on it. A distributed general office is a database shared across an extensive network of nodes. This means that people who access this database can instantly view a copy of the general ledger from their computer screens. Therefore, if one person decides to create a record in the general office, this record will be reflected for all other people on the network in a few seconds or minutes.
To run this record, all nodes must validate and validate this record, which is provided by the release of blocks and through the extraction operation in the bitcoin network.
Who has access to the distributed general office?
In general, in the distributed general office, the people who have access to it are, in fact, the people who should have access to it. In other words, each person who forms part of the network must access the general office and be able to enter and view the general office through a password.
In the case of digital currencies and blockchain technology, it is also common for the general ledger to be displayed in public, meaning that anyone can access and view transaction information in the general ledger database. It should be noted that public access to transaction information distributed on the general ledger does not mean that accessible individuals can modify or delete this information. To make a difference in the distributed general office, everyone on the network must reach a mutual agreement, which is called consensus. To approve and finalize a change in network records, networkers must agree with each other.
What types of assets are traded in a distributed general ledger?
The distributed head office covers a variety of assets, including financial (legal), legal, electronic, or even physical assets. For example, the distributed general office can be used to inspect a herd of cows among a group of farmers named Pete, John, and Dave. These farmers live miles away from their farmland, so they hire a man named Steve to manage and inspect their cattle. Every morning, Steve updates the distributed general office that Pete, John, and Dave have access to so that all three can see the cows’ buying and selling information and their prices instantly.
How does a Distributed Ledger general office work?
There is no need to check from a technical point of view; a distributed general office operates through nodes. Ninety points Are network connections that can receive information through distributed networks, Send, save or create. A node is an office software computer that executes the whole distribution.
In the example above, each of Pete, John, and Dave’s computers Used to manage their herd is considered a node. Using From it, these people can identify, process, and exchange with each other. So nodes are points inside a network or system.
Telephone conferencing can be considered another example. Each person attending the conference is a node whose network connection ensures that these people can talk to each other.
Therefore, to better understand how distributed general office works, it is essential to be familiar with the concept of a node. Nodes are communication points that allow people and devices to communicate on a network.
